GUD Holdings (GUD)

Goldman Sachs has a “neutral" recommendation on GUD Holdings as it plans to relocate the production capacity of its Dexion Australian Industrial pallet racking factory to its newer and lower cost factories in Malaysia and China.

“The relocation of volumes from Australia to its Malaysia/China facilities will significantly reduce the cost base of Dexion’s warehouse racking operations and was flagged at the 2013 AGM," Goldman said.

“We continue to expect the benefits of GUD’s turnaround strategy to be achieved over FY15 (or later years) given strong competition and significant investments required in the Sunbeam and Dexion businesses."